Civil Aviation
Lebanese Directorate General of Civil Aviation
Lebanon

The Problem

Lebanon has made extraordinary achievements, in a record time, in the area of civil aviation. All started with a clear vision to make the Lebanese Civil Aviation productive economic and development arms for the country’s future prosperity. This vision aimed at making the country an important aviation hub in the region and an efficient cross road between Europe and the Middle East. The vision is also aimed at making the civil aviation a successful model in aviation restructuring, liberalisation, privatisation and deregulation in the region and worldwide. The successful story of the Lebanese Civil Aviation is related to many factors and to a clear roadmap that was approved by the government and quickly implemented by the civil aviation authority. It required courageous decisions and strong political wills by the country’ leaderships. It required high commitments and loyalty as well as unlimited patient in order to tackle all encountered financial, social, and political difficulties. The success story first started through the successful restructuring process of the country’s only regular airline MEA that was making millions of dollars losses every year. MEA went through a complete restructuring phase, streamlining of the entire workforce, acquisition of a new fleet of Airbus aircrafts, cleaning of the airline’s overall debts and cancelling of the non-profitable air routes. Lately the approval of parliament of new aviation laws and regulations has transformed the Civil Aviation Directorate from a conservative public sector to an Authority that is efficient, flexible and enjoys a modest success story. Subsequently the approval of the Council of Ministers of all related aviation Decrees have formed the basis for the legal framework that transformed the whole aviation industry into new era. The implementation of new and unique aviation policies in liberalisation, privatisation and deregulations has resulted in of huge investments and job opportunities that are the pillars of economic and social developments. The new airport, airport unique functions, activities and the state of the art equipment have made Beirut Rafiq Hariri International Airport a very important example in the delivery of high standard of airport services in the region. The international audits by the World regulator namely the International Civil Aviation organisation (ICAO), as well as most of the aviation international organisations have resulted in a greater world confidence and higher growth of air traffic activities. The Lebanese Civil Aviation success has been studied and imitated by many neighbouring countries in the region but it deserves to be officially commended by international parties. In a small country that is highly politicised with complicated social, religious, political structures, these results have to be considered achievements and led to offering the highest standard of services to all customers in all aviation operations

Solution and Key Benefits

 What is the initiative about? (the solution)
The achievements can be summarised as follows. The approval of Parliament of the new aviation law No: 481 dated 12-12-2002 and later by the approval of the Council of Ministers of the related decrees in 2004 that transformed the shape of the industry. The approval of the new Lebanese Aviation Regulation (Lars’s) in safety and securities in collaboration with the international Civil Aviation Organisation (ICAO) that placed Lebanon in the forefront of safety advocators. The approval of Parliament of the new Aviation Safety Act No: 663 in 2004 that gave Lebanon the Legal platform to enhance Safety by applying the latest Safety Control Measures on airlines and operators failed to satisfy local and international safety rules and regulations. Lebanon has taken one of the extraordinary aviation liberalisation decisions in the world through the implementation of open sky policy that calls for the approval of all traffic rights including all Freedoms without reciprocity. Achievements include an exceptional 20% increase in traffic growth, doubling of the airport income and exceptional growth in employment (800 new jobs which represents 18% of the aviation workforce). The establishment of 8 new charter airlines that dragged new and large investment and job opportunities in the country. Lebanon has the first and only Black Lists, in the region, of countries, airline and aircraft types that failed the safety criterion as a result of rigorous safety monitoring and inspection programmes. On operational achievements the airport recently opened the one and only full General Aviation Terminal in the region that is fully managed by the private operators and offers the highest quality of services to the private and charter operations. The airport just opened the largest and magnificent First and Business passenger lounge in the world. The airport houses the only on-the-spot hand made free cigar lounge in the world. The airport houses the only support system for family and needy passengers in the world that offers assistance from the aircraft to the car and vice-versa. The airport just opened the only ICAO approved Aviation Safety Training Centre in the Middle East. The airport just acquired the latest state of the art equipment in Air Navigations that would offer the best quality of services to all over-flying aircrafts and airline operators. The airport just reached perhaps the lowest airport fees and charges in the world and the management is determined to reduce them in order to attract more operators and customers. The airport has moved quickly ahead in privatisation and has already privatised fuel operations, aircraft ground handlings, duty free shops, duty paid shops, aircraft and airport catering, airport maintenance, and parking. This helped increase efficiencies in all privatised services and related activities. The airport is the only airport in the world that builds into its activities back up plans for wars. This is aimed to achieve airport operation continuity as was demonstrated following the 12 July crises, which despite the full damages to the airport infrastructure, the airport opened only 5 minutes after the stoppage of the war and the lifting of the blockade. Finally, considering the status of world airports, all of the above becomes achievements and this Beirut Airport becomes unique.

Actors and Stakeholders

 Who proposed the solution, who implemented it and who were the stakeholders?
The new aviation law No: 481 dated 12-12-2002.
New aviation Decrees dated 2003.
New aviation regulations (LAR’S) July 2003.
New Aviation Safety Law No: 663 dated 2004.
New General Aviation Terminal opened July 2005.
Licensing new charter operators started in 2003 and still in progress.
New airport operations such as the lounge and free shops opened last year.
The airport needy and family assistance programmes started last year and are in progress.
The aviation safety-training centre reopened last year.
The acquisition of the latest and state of the art equipment started two years ago and still in progress.
The privatisation of airport functions started in 2002 and still in progress.
The implementation of the unique liberalisation process started in 2003 and the results appeared immediately in the following year.
Achievements in employments, and income growth started in 2003 and still in progress.

(a) Strategies

 Describe how and when the initiative was implemented by answering these questions
 a.      What were the strategies used to implement the initiative? In no more than 500 words, provide a summary of the main objectives and strategies of the initiative, how they were established and by whom.
Lebanon has a good geographic location and a long history in aviation. Lebanon recognised the importance of aviation in 1920 when a French pilot flew his one-seater aircraft from France towards the Middle East and landed in Lebanon. In 1940 the French government built an aircraft manufacturing company at Riyak Airport where Riyak43 named aircrafts were manufactured during the Second World War. This had inspired later many Lebanese in entering into aviation education and later into investment that resulted in the birth of the Middle East Airline (MEA) some 60 years ago. However, years of regional and internal crises made it difficult for the civil aviation to play an important role in the country’ development. Lebanon had one international and two domestic airports out of which only Beirut airport is operating internationally and acted as a hub for the region for many years. The country had one international regular passenger airline MEA and one regular cargo airline namely the Trans-Mediterranean airline (TMA). Following the internal Lebanese problems in 1974, MEA and TMA faced tremendous challenges that resulted in large financial debts and operational problems. MEA made huge losses yearly and TMA stopped operating. The airport was getting old and all services were considered unsatisfactory. The Civil Aviation Authority was not in any position to help the economy of the country, nor was it able to cater for the needs of its customers. The civil aviation customers are airline operators, airport ground operators, passengers, travel agencies and cargo forwarders, fuel and catering companies, and airport various service providers. Following the ICAO audits in 1995 that highlighted many deficiencies and based on their recommendation for the restructuring of the civil aviation the Lebanese Government decided to move ahead and give this sector the intention it deserves. ICAO has observed, following their extensive comprehensive audits to all civil aviation authorities in the world, that the lack of safety and security in the world is largely due to inability of these authorities to tackle new emerging international challenges and that this necessitate organisational structures that are flexible and capable of implementing ICAO’s Chicago Conventions and annexes. It was not until the late Rafiq Hariri, whose Beirut airport was named lately after him, tasked a group of local and international experts with developing a roadmap and a vision for Lebanon civil aviation. In deciding the appropriate structure experts from ICAO and international aviation organisations were consulted and past experiences of highly developed civil aviation authorities were studied. The new Aviation Civil Aviation Law 481 took years of negotiations, convincing and approvals. The current Director General of Civil Aviation along with his team has developed the necessary laws, decrees, policies and regulations for the transport sector and is currently ensuring their full implementation. The aviation vision and its strategic objectives were approved and implemented and the results are becoming realities and proved extremely positive for the country’s economy and its future’s prosperity.

(b) Implementation

 b.      What were the key development and implementation steps and the chronology? No more than 500 words
The vision and its plan concentrated initially on creating the legal framework necessary for their success. Rebuilding civil aviation requires appropriate laws and decrees, that reflect the objectives of the vision, as well appropriate policies and regulations. Contracts with ICAO’s Technical Corporation Bureau TCB were signed in order to produce the latest up to date aviation safety regulations that would put Lebanon in the forefront of aviation safety and security. And as the aviation vision calls for the full liberalisation and privatisation it was then necessary to make sure that the only existing airline (MEA) is operating efficiently. The liberalisation process is one of the most severe challenges facing airlines that must be able to compete in order to withstand the forces of change and competitions. Liberalisation for Lebanon is critical as the country’ economy depends on tourism and services. The Civil Aviation authority and the Council of Ministers approved the airline submitted re-structuring plan that proved successful and led lately to MEA current profitable status. The priority was then concentrated on delivering the highest quality of services in all airport operations. Work started on manpower developments through training programmes managed by ICAO’s international trainers in the aviation-training centre. The safety department was completely managed initially by ICAO’s experts who oversaw the implementation of the new aviation safety regulations, and trained local counterparts to perform all the necessary inspections and audits according to ICAO standards and recommendations. The airport was then equipped with the latest and most advanced technologies in Air Navigation that would offer local and international aviation operators the highest quality of services. The airport then acquired the ICAO recommended security equipment for body and baggage inspections and it is currently in the process of ordering the latest technology in biometric systems for various airport operations including customs and immigration. This helps to streamline quickly passenger movements throughout the airport to avoid any aircraft delays. The privatisation process was then an important item on the priority list. This aimed at offering all customers the highest quality of services in the Duty Free Shops, airline VIP lounges, banking, parking, lost baggage, hotel and car rental facilities, TV facilities for all passengers. Free WI-FI Internet access in the airport. As this process took off the number of private and charter operators increased in large scale. Many investors saw the opportunity in liberalisation and privatisation and determined to invest heavily. The strategic objective of licensing new charter airlines was then implemented. This aimed at creating jobs and investment opportunities. It was important on the authority’s goal list the abolition of monopolies in all airport services and the promotion of fair and healthy competition that would lead to higher efficiency, and good quality services. It was extremely important for the authority to be at the forefront of airport safety. It was then decided to implement a stringent safety oversight inspection programme on all operators that led to the only Black List of banned companies in the Middle East. This was aimed to create the international level of confidence in the Lebanese civil aviation and preserve the highest rate of safety and thus helping in cleaning the industry from operators failing to adhere to safety criterion. Priorities were very clear and the implementation plans proved successful.

(c) Overcoming Obstacles

 c.      What were the main obstacles encountered? How were they overcome? No more than 500 words
The global strategy for the Lebanese aviation vision is the full liberalisation and deregulation of the transport sector. It includes the opening of Lebanon to the world and basically offering passengers the option to fly at the schedule of their choice and the price they can afford. The appropriate tools are privatisation, licensing new commercially viable airlines and multiple networks of charter and regular operations in a fair and healthy environment. Strategies also include the creation of a pure cargo airport in the north of Lebanon (Klayaat) that is linked to a chain of free zones in the Gulf and Red Seas. These triangular free zones would link Asia, Europe and Africa together in order to reduce commercial fees, charges and transport cost that would lead to growth in businesses and economic developments. Strategies also include the creation of charter and aviation training airport at Riyak to cater for the need of all flying clubs, schools and private operators. This would lead to more job and investment opportunities. Strategies include abolishing totally of some airport charges and the reduction of others to a bare minimum in order to attract more businesses and more income. It is also intended to have a paperless airport using all available technologies that would make Beirut airport a model in airport efficiency. Although currently 35 international regular and 20 charter airlines use Beirut Airport, however the aim is to attract 30 more airlines that would double the present passenger and cargo movements. All of the above strategies and plans are aimed ultimately to deliver the highest quality of services that would attract tourists, business people, and transit passengers as well as cargo businesses that would lead to higher economic prosperity. According to the International Air Transport Association (IATA) report, every one million additional passengers results in an average of 4000 new jobs. The strategy is to reach 12 million passengers in year 2020. It is not possible to do so without the above global, comprehensive vision, strategies and plans.

(d) Use of Resources

 d.      What resources were used for the initiative and what were its key benefits? In no more than 500 words, specify what were the financial, technical and human resources’ costs associated with this initiative. Describe how resources were mobilized
High world confidence in the Lebanese Civil Aviation management. This encouraged the European Union (EU) to initial with Lebanon the first open Air Service Agreement. High world confidence in Lebanon aviation safety and security led to the re-election of Lebanon to the Executive Council of ICAO in Montreal. It also led to the election of Lebanon to the Council of The Airport Council International for Asia Pacific and Middle East last year. Results include doubling the airport income in a very short time. The 20% yearly increase in passengers (above world average) led to excellent job opportunities in the order of 800 new jobs. That represents 18% of the current workforce. The implementation of the liberalisation policy in a fair and healthy competition resulted in cheaper airfares and sharp increase in passengers on all routes as well as higher quality of services. One of the best examples in the world is the traffic between Beirut and Dubai where 13 airlines are currently competing and where airfares range between 100 and 550 US dollars. This was a win-win situation for all airlines operating between these two cities and resulted in doubling passenger numbers and airport income. Incidentally MEA did not decrease its airfare and was able to compete by offering the highest quality of services. The licensing of new airlines has also resulted in similar achievements. Universities and Technical Colleges have established aviation related faculties and department s for aviation engineering, maintenance, business and management due to the positive growth and demands of the aviation market. This opened a whole new chapter in the aviation industry in the country. The opening of the state of the art General Aviation terminal gave this industry one of its most desired dreams. The GA Terminal is totally managed by private and charter operators that delivers one of the highest standard of services in the world. The level of satisfaction is tremendous. The opening of the new facilities at the airport such as the VIP lounges and on –the-spot hand made cigars lounge prompted may world travellers to use Beirut airport as their transit hub. The privatisation of airport operations gave this industry the investment opportunities that helped to create the highest level of standard and efficiencies in customer care services. Lebanon may not be in a position to have the largest or prettiest airport in the world but it is certainly able to have the most hospitable, efficient and high quality airport. The culture change of politicians, operators, and customers was perhaps one of the most important changes of all. A profitable airline with a profitable airport, good employment and investment opportunities, strong world confidence, and superb quality airport is the success story of Lebanon.

Sustainability and Transferability

  Is the initiative sustainable and transferable?
Laws, decrees, policies and regulations are regularly published by the Government Gazette. This is a solid and strong base for their sustainability. The country’ strong social structure helps to disseminate all information and actions very quickly as leaders, decision makers, and people live in a closed loop structure. The Civil Aviation Web Site (beirutairport.gov.lb) is accessible to all customers and operators. The airport has a biannually published journal. The airlines are also an important source of all information. The civil aviation authority has operating and safety management manuals that would help replicate and disseminate all information and actions. Airport management organises regular meetings with all airlines and airport operators on the first Tuesday of every month in order to listen to operators difficulties and exchange ideas and views as well as to formalise action plans for offering the highest level of services to all customers. Regular meeting are also organised for all pilots and aviation engineers and technicians in order to disseminate new rules and regulations. The global training programme helps to replicate all actions and implements all procedures very efficiently. There is no room for errors in some airport operations such as air traffic control, meteorology, safety and security inspections, fuel operations and emergency procedures. Quality control process and audits are performed internally quite regularly in order to identify and remedy all possible deficiencies. ICAO, international airlines, and international aviation organisations such as the International Air Transport Association (IATA) and the Arab Civil Aviation Commission (ACAC) regularly perform international audits on airport operations. All Audits reports were extremely positive. Due to the nature of the airport and being the gateway to the country almost all government authorities are represented at the airport and offer the related services. This necessitates the existence of good efficient and coordinated working environment in order to achieve the intended level of services. There exist in every department a head and an acting head, trained simultaneously, in order to have smooth continuity in management at all time, efficiency and transferability of responsibilities.

Lessons Learned

 What are the impact of your initiative and the lessons learned?
The difficulties were political, social and financial in nature. One of the most critical difficulties was convincing decision makers that unpopular decisions are imperative for the success of the vision and that decisions have to be taken at the appropriate timeframe. Political backing is extremely useful and necessary. Politicians and operators are usually afraid of the unknown and are reluctant to change or try new ideas. A global aviation vision requires s strong, courageous, loyal and patient leadership. Building new civil aviation was a mission that succeeded due to the leadership of the Minister and the Prime Minister as well as to the Director General of Civil Aviation. The implementation of the plans required changing the culture of the airport management. The encountered difficulties were tackled trough direct one to one contact, continuous training, patient, and more importantly with the creation of the aviation family spirit that harmonised people goals, objectives and interrelationships. This creation of a suitable, efficient and dynamic authority, that cater for the need of the ever changing and fast growing industry and for fulfilling the criterion and recommendation of ICAO, represents one of the biggest and most difficult worlds’ challenges in aviation. Lebanon has succeeded and is becoming a model in the region and the world and many regional aviation organisations are currently using this model. The financial difficulty was always considered to be the most critical difficulty to overcome. However, experiences in this case have demonstrated that although finance was critical it was possible to achieve good financial position by having the appropriate vision, implementation plans and will. Funding from international organisations, donors and financial institutions were very appreciated as they helped to achieve the desired goals. The international relations were extremely important in acquiring the international expertise for aviation safety and security as well as in acquiring the suitable equipment for airport operations. International expertise has helped to find the appropriate solutions so that we do not have to re-invent the wheel again. It is extremely useful to share and exchange ideas and views with the international organisations but it is equally important to know what you want and to choose the most appropriate solution for the country’ culture. It is important to remember that although the change and the success may depend on some individuals at the beginning, it has to be institutionalised for continuity and it has to be part of the country’s overall economic vision. One of the biggest problems in the world in aviation is the reluctance of aviation authorities to take decisions not favoured by the local regular airlines. This matter has delayed the development process in many countries and although Lebanon has succeeded in this regards, the process could have been made faster for the sake of better and freer aviation market. It is very hard to think of what could have been done differently as the quick success and the results were surprising and astonishing.

Contact Information

Institution Name:   Lebanese Directorate General of Civil Aviation
Institution Type:   Government Department  
Contact Person:   Dr Hamdi Chaouk
Title:   Director General  
Telephone/ Fax:   961-1-628195
Institution's / Project's Website:   961-1-629010
E-mail:   dgca@beirutairport.gov.lb  
Address:   Beirut Rafiq Hariri International Airport
Postal Code:  
City:   Beirut
State/Province:  
Country:   Lebanon

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